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Forex - Aussie, yen nearly flat ahead of busy Asian data day, China PMIs

Published 08/31/2015, 06:53 PM
Updated 08/31/2015, 06:55 PM
Yen flat ahead of busy data day
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Investing.com - The Aussie gained mildly in Asia ahead of a slew of data day in the region while the yen was nearly flat.

AUD/USD traded at 0.7114, up 0.01%, while USD/JPY changed hands at 121.20, down 0.02%.

A busy day in Asia with the start of September with the release of AIGroup Manufacturing Index at 0930 Sydney time (2330 GMT) to start with the index having moved slightly in to expansion in July. At 1130 (0130 GMT), second quarter current account data are due from Australia, expected to show the deficit widened to A$15.80 billion from A$10.7 billion deficit in the first quarter.

Later in the day, the RBA's cash rate decision takes center stage at 1430 (0430 GMT). The unanimous forecast is for the rate to be left on hold at a record low 2.0% for the fourth straight month.

Then at 1630 (0630 GMT), the RBA's commodity price index is due. In July the index fell 5.0%.

In Japan, second quarter financial Statements Statistics of Corporations by are due at 0850 Tokyo time (2350 GMT).

Then July preliminary wages are due at 1030 (0130 GMT). In June, the total average monthly cash earnings per regular employee in Japan fell a revised 2.5% from a year earlier and posting the first year-on-year drop in seven month.

In China, the August CFLP Manufacturing and Service PMI is due at 0900 Beijing time (0100 GMT) with a reading of 49.7 expected.

Then at 0945 (0145 GMT), the August Caixin final Manufacturing PMI is due. The preliminary 47.1 reading -- a six-and-a-half-year low -- did much to knock investor sentiment when it was released earlier this month, helping to fuel last week's calamitous global markets sell-off.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.02% to 95.98.

Overnight, the dollar pared losses against against the other major currencies on Monday, even after data showed that anufacturing activity in the Chicago-area expanded at a slower pace than expected in August, as expectations for an upcoming U.S. rate hike continued to support.

Market research group Kingsbury International said its Chicago purchasing managers’ index declined by 0.3 points to 54.4 this month from a reading of 54.7 in July. Analysts had expected the index to hold steady at 54.7 in August.

The dollar remained supported after Federal Reserve Vice Chairman Stanley Fischer said Friday it was still too early to decide whether to raise interest rates from near zero at the bank’s September meeting.

Investors were looking ahead to Friday’s U.S. jobs report for August, which could help to provide clarity on the likelihood of a near-term interest rate hike.

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